The central bank of Ethiopia announced that the weighted average exchange rate at Wednesday’s special foreign exchange auction stood at 107.9 birr per U.S. dollar, reflecting recent economic adjustments.
Twenty-seven banks joined the auction, according to the National Bank of Ethiopia.
Transactions will influence the bank’s indicative daily exchange rate on Thursday, marking a shift in currency valuation.
Last week, Ethiopia transitioned to a market-determined exchange rate system.
This move aims to secure a new IMF lending program and progress on a long-delayed debt restructuring effort.
The nation is grappling with high inflation and a persistent shortage of foreign currency.
This shift in foreign exchange policy is part of broader economic reforms.
Ethiopia hopes these changes will stabilize its economy and address the financial challenges it has faced.
The new exchange rate system is a crucial step in achieving these goals.
